The MoU gives edf the exclusive rights to use REH’s technology for offshore wave power schemes in the northern hemisphere and at Reunion Island in the Indian Ocean. Under the pact, REH has first option to participate in EDF’s projects in those territories.
REH’s converter will use a small diameter pipe to carry high pressure seawater ashore to a turbine. The company claims the technology is the first to sit on the sea bed where it would be relatively sheltered.
EDF plans to develop each wave power project using the REH technology, in the exclusive territories, by establishing separate special purpose companies that will purchase a licence to use the technology.
In addition to licence fees of 3% of project costs, the debt-equity financed ventures could see REH have entitlement to 25%-49% of the ownership of each company where it opted to participate, the firm said in a statement.
A further aspect of the pact will see EDF buy US$6M of newly issued shares in REH, and the funds are to be used for the final R&D stages of the sea bed-based wave power converter technology. REH is listed on the London Stock Exchange’s AIM market.
